Törenholt, Marcus

Abstract [en]

When a company launches a product on a new market the acceptance varies depending on what market the company turns to. The difference depends on how the current situation is on the market and what experiences the customers have regarding the brand and competing brands. Depending on the market and the customers the company might have to price their product a bit different on each market. Customers’ valuation of different tangible and intangible attributes has proven to be a phenomenon worth studying. In the literature survey, various areas of theory are presented: new market launch, pricing and branding. The main emphasis is put on the market oriented pricing and brand value to the customer. The empirical material that this analysis was based on, was collected through personal interviews with representatives from four Italian and six German bus companies respectively. Furthermore, another personal interview was also made with one staff member from the analysed company who was working at the marketing and sales department. The conclusions drawn from this study is that a company can include the value of the brand in several ways when the market oriented price is set and the cost is only one part of the whole. Another conclusion drawn from the study is that the brand can add value to an industrial product in different ways and very much depending on which country the product is sold to. If two markets are compared, big differences can be noticed depending on the situation with competing brands, cultural acceptance from the customers and the awareness of the own brand.